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Who Is (More) Rational?

By Syngjoo Choi, Shachar Kariv, Wieland Müller, and Dan Silverman

American Economic Review, June 2014

Revealed preference theory offers a criterion for decision-making quality: if decisions are high quality then there exists a utility function the choices maximize. We conduct a large-scale experiment to test for consistency with utility maximization. Cons...

Reference-Dependent Risk Attitudes

By Botond Kőszegi and Matthew Rabin

American Economic Review, September 2007

We use Koszegi and Rabin's (2006) model of reference-dependent utility, and an extension of it that applies to decisions with delayed consequences, to study preferences over monetary risk. Because our theory equates the reference point with recent prob...

When Labor Disputes Bring Cities to a Standstill: The Impact of Public Transit Strikes on Traffic, Accidents, Air Pollution, and Health

By Stefan Bauernschuster, Timo Hener, and Helmut Rainer

American Economic Journal: Economic Policy, February 2017

Many governments have banned strikes in public transportation. Whether this can be justified depends on whether strikes endanger public safety or health. We use time-series and cross-sectional variation in powerful registry data to quantify the effects of...

Double/Debiased/Neyman Machine Learning of Treatment Effects

By Victor Chernozhukov, Denis Chetverikov, Mert Demirer, Esther Duflo, Christian Hansen, and Whitney Newey

American Economic Review, May 2017

Chernozhukov et al. (2016) provide a generic double/de-biased machine learning (ML) approach for obtaining valid inferential statements about focal parameters, using Neyman-orthogonal scores and cross-fitting, in settings where nuisance parameters are est...

Automobile Externalities and Policies

By Ian W. H. Parry, Margaret Walls, and Winston Harrington

Journal of Economic Literature, June 2007

This paper discusses the nature, and magnitude, of externalities associated with automobile use, including local and global pollution, oil dependence, traffic congestion and traffic accidents. It then discusses current federal policies affecting these ...

Moving to Opportunity or Isolation? Network Effects of a Randomized Housing Lottery in Urban India

By Sharon Barnhardt, Erica Field, and Rohini Pande

American Economic Journal: Applied Economics, January 2017

A housing lottery in an Indian city provided winning slum dwellers the opportunity to move into improved housing on the city's periphery. Fourteen years later, winners report improved housing but no change in tenure security, family income, or human capit...